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A Lean System Has the Following Characteristics: Demand Rate =

Question 2

Multiple Choice

A lean system has the following characteristics: demand rate = 40 parts per hour; safety stock required = 10%; the container size = 8; lead time to replenish an order = 4 hours.
-Calculate the maximum system inventory for this part.


A) 16 units
B) 40 units
C) 240 units
D) 80 units
E) 176 units

Correct Answer:

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